Corporate bosses complicit in any corruption involving trade unions risk being exposed by the Royal Commission into the union movement to be announced by the Abbott government on Monday.

While the terms of reference for the inquiry will focus on union behaviour exemplified by specific past episodes of malfeasance – the Australian Workers Union slush fund, the rorting at the Health Services Union, and recent allegations of corruption and thuggery in the construction sector – there will also be latitude for the Commission to explore any new avenues uncovered during the inquiry.

Any corporate involvement such as paying bribes risks being uncovered, a government source said. But the inquiry will be primarily focused on the labour movement and will be conducted by former High Court judge
Dyson Heydon
.

With Parliament to sit on Tuesday for the first time this year, the Royal Commission announcement will form part of a pressure campaign on Labor over industrial relations.

The government will also pressure Labor to pass legislation before the ­Senate restoring the ­construction industry watchdog, the Australian Building and Construction Commission, and legislation to bring penalties for corrupt union bosses in line with those for corrupt company executives.

“The recent revelations by Fairfax Media about the links between some CFMEU officials and organised crime is but another chapter in what we at Boral have experienced over the past 12 months: an inexcusable, unfair and unlawful campaign against our company, and our staff, even though we are not in dispute with the union," he said.

Union campaign costs Boral $10m

“This campaign impacts the livelihood of our customers, employees, our suppliers, and ultimately impacts our shareholders." Mr Kane said that since 2012, the campaign had cost Boral $10 million in lost business and legal fees. “Our trucks have been stopped, our workers have been intimidated, some of our drivers harassed and threatened, and many of our clients in Victoria have had a ‘friendly visit’ from union officials warning them, essentially, not to do business with us.

“Many of our clients have refused to toe the union’s line, for which we are eternally grateful, but it’s a tough call for many small operators."

Opposition Leader
Bill Shorten
denounced the Royal Commission as nothing more than a $100 million, ­taxpayer-funded witch-hunt designed to weaken unions and harm Labor politically.

He called for the establishment of an Australian Federal Police-led taskforce to investigate the most recent claims concerning the construction sector.

“If you’ve already got the Australian Crime Commission with significant powers, if you’ve already got the Federal Police force, if you’ve already got hard-working state and territory agencies, why do you create a talkfest costing tens and tens of millions of dollars?" he said.

“The best way to deal with crooks and criminals in our community, whoever they are – employers, or if they’re union reps, or indeed anyone else – is to help the police do their job."

Mr Abbott said Mr Shorten faced a choice. “We’re on the side of the honest unions. We’re on the side of the honest worker," he said.

“The question is, whose side is Bill Shorten on?

“Bill Shorten is a former union official himself and it looks like Bill Shorten wants to run a protection racket for a protection racket."

Mr Abbott defended a Royal Commission, something he only decided upon after Fairfax Media revealed the corruption allegations in the building sector. “Sometime you need to shine a great big spotlight into the dark corners of our national life. It is only then . . . we can see the law enforcement agencies doing their job."